CLS Holdings buys Dortmund property for €35.6m

CLS Holdings said it had bought a multi-let office property in Dortmund, Germany, for €35.6m (£30.8m) after costs from an unnamed US investment manager.

The multi-let property comprising 22,296 sqm (239,992 sq ft) of office space which, with an occupancy rate of 94.6%, currently generates a rental income of €2.8m a year, reflecting a net initial yield of 7.1%.

The property has a diversified tenant base which provides a stable income from 15 tenants and a weighted average unexpired lease term of 3.3 years.

The transaction will be financed with existing cash resources and debt from a local German bank, CLS said.